TECHNICAL AND COMMERCIAL OPERATIONS CONSOLIDATED - STRATEGIC
CONSIDERATIONS AND COMPETITIVE STRENGTHS AT THE END OF 2007

Dear Shareholder,

When the year is drawing to a close, it is right for me to send
you a
letter wishing you all the best for the Holiday Season and
commenting
upon some pertinent aspects of our current business. NAT now has
14
double hull environmentally friendly suezmax tankers including
two
newbuildings to be delivered in 4Q09 and 1Q10.

The market

We had a weak third quarter whilst there were signs that a rebound
in
spot tanker rates could be expected during the fourth quarter. It
was
no surprise to us that we have seen a strong increase in
freight
rates recently. The volatile spot tanker market is
notoriously
difficult to predict. The development is illustrated by the
IMAREX
index for suezmax tankers which was $17,160 per day in
October,
$29,921 per day in November and $68,013 per day up to and
including
December 6. To some extent this index is an indication of
the
level of the suezmax spot tanker market. In an improving market,
it
will take a certain time before NAT is getting the full effect
from
this rate increase as the vessels typically have contracts for
a
short period forward, i.e. only a few weeks.

Consolidation of technical operations

As advised shareholders, the announced consolidation of our
technical
functions has been completed. The reputable V.Ships Norway AS is
now
technically managing all the Company's vessels, except one which
is
on long term bareboat charter.

Consolidation of commercial operations

In previous reports, we have laid out a plan for consolidation of
our
commercial operations. Earlier our commercial functions
were
outsourced to pools operated by four different companies. The
last
step in this plan has now been decided - and going forward the
number
of partners will be two. We shall continue cooperating on
the
commercial side with Frontline Ltd (NYSE: FRO) and the private
Swedish
group Stena Bulk. We have known these companies very well for
years.
They are quality companies and prominent world names in the
shipping
industry. We have two vessels which soon will leave the Gemini
pool
of OMI to join our cooperation with Frontline Ltd and Stena Bulk
in
their respective pool arrangements. Thereafter, the
announced
consolidation of our commercial operations will be completed.

Strategy, full dividend payout and predictability

The Company has a clear and predictable strategic platform in
which a
full dividend payout model is a mainstay. As a policy, we pay out
all
the cash generated from operations. For 10 consecutive years
the
Company's dividend yield has been above 10%.

Low debt

NAT has low debt per dollar of asset value compared with many
other
companies. This will enable the Company to take
aggressive
expansionary steps in good markets and also expand if the spot
market
and ship values should be lower.

Low overhead expenses - an important competitive strength

Another competitive strength of the Company is our very low
overhead
expenses compared with other companies - among the lowest in
the
industry. It is our objective to keep overhead expenses low -
an
important competitive strength in itself. Our analyses indicate
that
NAT's overhead expenses are about 50%, or in some cases even
one
third of the level of other shipping companies on Wall Street;
i.e.
we have significantly lower overhead per dollar of revenue. We
reckon
that cash overhead expenses should be in the region of
$1,000/$1,500
per day per ship. The low cost base does not in any way
impact
negatively the top quality approach the Company has in all
functions.

Aligned interests - shareholders in focus - one share one vote

It should be noted that an important objective for NAT is that
the
interests of management of NAT must be aligned with the interests
of
shareholders in order that NAT management has no more or
less
incentive to take business risks than shareholders would wish.
This
clear profile gives you assurance of the security in which you
are
investing. The alignment of interests will continue to
guide
management to make prudent decisions on behalf of the Company.

Interests of shareholders are in focus - all shares have the
same
voting rights - one share one vote. There are no voting
privileges
for the Manager of NAT or for others.

Growth

We have come a long way since we had three ships in the autumn
of
2004 - having increased the fleet to 14 vessels now.
Further
accretive growth can be expected. This means that we are working
to
ensure that earnings and dividend per share after an acquisition
are
higher than the earnings and dividend per share before an
acquisition
in the same prevailing spot market. Without exception we will
keep
shareholders' interest in focus going forward.

Summary

I would encourage investors to look to NAT if you wish to invest
in
the tanker sector. We wish that NAT shall be priority number one
for
the investor in the tanker sector. In particular, our objective
is
also that NAT shall be the most attractive dividend paying
security.
Many shareholders contact us expressing views and recommendations.
We
encourage such active involvement from our shareholders.

From all of your friends in NAT I take this opportunity to wish
each
of you all the best for the New Year!

Sincerely,
Herbjørn Hansson
Chairman & Chief Executive Officer

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Matters discussed in this press release may
constitute
forward-looking statements. The Private Securities Litigation
Reform
Act of 1995 provides safe harbor protections for forward-
looking
statements in order to encourage companies to provide
prospective
information about their business. Forward-looking statements
include
statements concerning plans, objectives, goals, strategies,
future
events or performance, and underlying assumptions and
other
statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor
provisions
of the Private Securities Litigation Reform Act of 1995 and
is
including this cautionary statement in connection with this
safe
harbor legislation. The words "believe," "anticipate,"
"intend,"
"estimate," "forecast," "project," "plan," "potential,"
"may,"
"should," "expect," "pending" and similar expressions
identify
forward-looking statements.

The forward-looking statements in this press release are based
upon
various assumptions, many of which are based, in turn, upon
further
assumptions, including without limitation, our
management's
examination of historical operating trends, data contained in
our
records and other data available from third parties. Although
we
believe that these assumptions were reasonable when made,
because
these assumptions are inherently subject to significant
uncertainties
and contingencies which are difficult or impossible to predict
and
are beyond our control, we cannot assure you that we will achieve
or
accomplish these expectations, beliefs or projections. We
undertake
no obligation to update any forward-looking statement, whether as
a
result of new information, future events or otherwise.

Important factors that, in our view, could cause actual results
to
differ materially from those discussed in the forward-
looking
statements include the strength of world economies and
currencies,
general market conditions, including fluctuations in charter
rates
and vessel values, changes in demand in the tanker market, as
a
result of changes in OPEC's petroleum production levels and
world
wide oil consumption and storage, changes in our operating
expenses,
including bunker prices, drydocking and insurance costs, the
market
for our vessels, availability of financing and refinancing,
changes
in governmental rules and regulations or actions taken by
regulatory
authorities, potential liability from pending or future
litigation,
general domestic and international political conditions,
potential
disruption of shipping routes due to accidents or political
events,
vessels breakdowns and instances of off-hire, failure on the part
of
a seller to complete a sale to us and other important
factors
described from time to time in the reports filed by the Company
with
the Securities and Exchange Commission, including the prospectus
and
related prospectus supplement, our Annual Report on Form 20-F,
and
our Reports on Form 6-K.